SpaceX’s soaring stock price isn’t just making shareholders richer. It’s making acquisitions cheaper.
Elon Musk’s company hasn’t wasted time since its record-breaking public debut. Some highlights from its first three days of trading:
-A nearly 50% rise in share price from its $135 IPO price.
-A $2.66 trillion valuation, pushing it ahead of Amazon to make it the fifth-most valuable company in the world.
-An agreement to buy vibe-coding startup Cursor for $60 billion.
SpaceX had 30 days after its IPO to decide whether to buy Cursor under the terms of an agreement struck in April. It only took a few days to pull the trigger.
There are many reasons SpaceX would want to quickly finalize the deal with the startup. Check out Shubhangi Goel and Charles Rollet’s fantastic profile on Cursor and its 25-year-old cofounder and CEO, Michael Truell.
But one motivation stands out: SpaceX’s stock has never been hotter. And since it’s an all-stock deal for Cursor, SpaceX’s surge means it can use fewer shares to get the transaction done.
The actual number of shares SpaceX forks over won’t be determined until right before closing, which is expected later this quarter. But the higher SpaceX’s stock keeps climbing, the better this deal looks.
SpaceX’s stock price might be its new hidden weapon.
SpaceX’s critics said its eye-popping valuation wasn’t justified heading into its IPO. But billionaire investor Bill Ackman actually sees it the other way around.
He highlighted how SpaceX’s massive size enables it to make all-stock deals without taking too much of a hit to its bottom line.
Granted, all-stock deals cut both ways. If SpaceX’s stock starts plummeting, it’ll need to dilute itself more to get a deal done. And if history has taught us anything, Musk-run companies aren’t immune to volatility.
But for now, SpaceX can make deals using an asset that keeps climbing in value even when it feels like it shouldn’t. (SpaceX’s stock spiked yesterday morning after the Cursor announcement, which is typically the opposite of what happens for an acquiring company.)
It’s no wonder AI rivals like OpenAI and Anthropic are racing to go public. Tapping into investors eager to bet big on the AI race is turning into an infinite money glitch.
At least, for now.
